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Drug-Patent Cliffs


Expiring patents, aspiring generics

If you’ve taken a prescription medication recently, there’s an excellent chance it was a generic. Going forward, generic drugs and their close relatives biosimilars can expect to gain an even greater share of the market, as many brand-name drugs owned by big pharma will lose patent protection in 2019 and 2020. Moreover, a common ground between Republicans and Democrats is lower drug prices that can be spurred by making it easier to approve generics and biosimilars. Thanks partly to the Generic Drug User Fee Act, the FDA has been approving record numbers of generics with increasing efficiency.[1] Globally, generics and biosimilars are gaining increasing acceptance as the equals of patented drugs in safety and efficacy.[2] Although generics and biosimilars don’t typically command the steep prices of their patented and competition-free counterparts, their high sales volumes can stimulate sales and growth for generic drugmakers. </br></br><b>Drug Patent Cliffs in numbers: </b></br>-Sales of biosimilars are expected to potentially triple in size between 2018 and 2020, to $15 billion.[3] </br>-Between 2018 and 2023, the global generics market is projected to grow to $474 billion, at a CAGR of 6.8 percent.[4] </br>-In 2018, the FDA fully approved 781 generic drugs -- 90 percent more than the 409 it approved in 2014, the first year the Generic Drug User Fee Act was in full effect.[5] See More
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Portfolio Index 1 YR Return
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Weight Segment & Stocks Symbol 1 YR Return
64.0% Biosimilar 6.8%
11.7% Eli Lilly and Company LLY 17.6%
10.6% Pfizer Inc. PFE 16.7%
10.5% Novartis AG NVS 6.5%
10.0% 8xxxxxxxxxxxx 8xxxxx 8xxxxxx 8xx 88.8%
9.7% 8xxxxx 8xx 88.8%
9.5% 8xxxxx 8xxx 8xxx 88.8%
1.1% 8xxxxxxxxx 8xxx 8xxx --
1.0% 8xxxxxx 8xxx 8xxx 88.8%
36.0% Generic Drugs 1.3%
9.8% 8xxxxxxxxxx 8xx 8xx 8xx 88.8%
6.7% 8xx 8xxxxxx 8xxxxxxxxxxx 8xx 8xx 88.8%
6.5% 8xxxxxxx 8xxxxxxxxxx 8xx 88.8%
5.1% 8xxxxxxxxxxxxxxxx 8xxxxxxxxxx 8xx 88.8%
1.8% 8xxx 8xxxxxxxxxxxxx 8xxxxxxxxx 8xxxxxx 8 8xxx 88.8%
1.2% 8xxx 8xxxxxxxxxxxxx 8xxxxxxxxx 8xxx 8xxx 88.8%
1.0% 8xxxxxxxx 8xxxxxxxxxxxxxx 8xxx 8xxx 88.8%
0.9% 8xxxxx 8xxxxxxxxxxxxxx 8xxx 8xxxx 8 8xxx 88.8%
0.8% 8xxxx 8xxx 8xx 88.8%
0.8% 8xxxxxxxxxxx 8xx 8xx 88.8%
0.7% 8xxxxx 8xxxxx 8xxxxxxxx 8xxx 8xx 88.8%
0.6% 8xxx 8xxxxxxxxxxxx 8xx 8xxx 88.8%
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